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Your Financing Options

No longer are people who want to purchase a house limited to their local bank. There are traditional hometown banks, mortgage brokers, and online financing organizations that have a variety of loan options for prospective homeowners.

Each of these choices have their own set of lending process, paperwork, and requirements. However, all of them rely on several sets of criteria to determine credit worthiness. Below we outline the very basics of these.

Also, we have provided a short video for that explains the difference between individual banks and mortgage brokers. Just click the images or the text link below to view.

Buying a Condo - Is it for you?

Condominiums are a good way to get into the housing market if you can't afford to buy a house or prefer thistype of lifestyle.
Condos are also great if you don't want to spend a lot of time doing yard work or maintenance. One important thing to remember about a condominium is that you don't actually own the unit you live in nor the lot. You own the air space inside the walls, ceiling and floor of the unit. With a townhouse you own the unit along with the lot. Owning a condo, you are restricted from adding a room, painting the exterior or changing the landscaping. When you buy a condo you are also joining a homeowners' association which is responsible for the maintenance of the units, insurance, garbage and outdoors areas. The monthly HOA fees may seem high at first, but owning a home will have similar costs over a same period of time.

What to Consider when Buying a Condominium
Ask owners in the complex what they like and dislike about both the unit and the complex.How good is the sound proofing? End units and upper units generally sell for more when sound comes into play. How is its location in the complex. Next to an access street, parking facility, pool? Look for units that are not adversely affected by these. Stay away from predominantly rental condo complexes, those having more occupants that are renters. They are often poorly maintained as absentee owners usually vote against improvements and increases in maintenance fees. Many lenders will not make loans if the percentage of renters is high compared with owner-occupants.

Compare monthly association fees with other similar condo complexes and what amenities are included. Find out if any increases in fees or special assessments are planned. Is the condo homeowners' association in good financial condition. Before making a purchase offer, obtain the latest financial statement from the homeowners' association. Are there any lawsuits between the homeowner association and the builder? Who manages the complex and how well are the common areas maintained. Check to see if there are any unusual bylaws, rules or CC&Rs. A good complex generally is a result of restrictions of pets and rentals. Read all papers carefully.

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Downpayment

With dramatic changes in the real estate market, most mortgage lenders require at least a 20% downpayment, however there are options available that only require a down payment of 5% or less of the purchase price. But the larger the down payment, the less you have to borrow, and the more equity you'll have. Mortgages with less than a 20% down payment generally require a mortgage insurance policy to secure the loan.

Closing Costs

Closing costs generally range from 2% to 3% of your loan amount. Closing costs can be divided into three main categories:

• Lender fees. Fees can include origination, points, application, credit report, and appraisal.
• Third-party fees. These fees vary by state and the company you select to close your loan. They can include fees for closing, title exam, title insurance and recording.
• Pre-paid items. These are items collected at the time of closing but are not really considered costs (for example, interest, taxes, and hazard insurance).
  

Moving into Your New House
What to do when the Moving Truck Arrives

When the moving truck gets there, you will need to be the director. Have the children stationed in their new rooms (so they are out of the way, unless they are big enough to fetch and tote). Tell the children not to start dragging out their stuff, until the furniture is in their room and they have a place to put their clothes. Have them to put the boxes against one wall. Warn them about not trying to climb on top of them LOL. You have your hands full. You don't need a trip to the emergency room from a busted noggin.

Main Rule here: As you unpack it, put it where it goes and breakdown the boxes and throw away the paper. Do not start another box until everything is put away. I don't want you to handle it twice.

The next day is when your head starts going crazy. You have so much to do and you don't know where to start. I can tell you exactly where to begin. You start your morning routine. Head to the kitchen and start breakfast.

While you are sitting having your breakfast, do not look at how much you have to do, only concentrate on making a list of the most important things to do first. That will keep your home running smoothly.

* Get the washer and dryer hooked up.
* Get the dishwasher running.
* Buy groceries for the family. Make out a list. Or if you have an initial grocery shopping list that you made while you were doing your planning, grab it from your moving notebook.
* Put on something for supper, or at least have some idea of what to fix.

Now you have a plan.

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In This Issue

Your Financing Options

Initial Considerations for Loan Eligibility

Downpayment

Closing Costs

Credit Ratings